A lottery and gaming company must pay half a million dollars in penalties after terminating an employee who reported to senior management and the United States Securities and Exchange Commission (SEC) that he felt that the company’s financial statements might be distorted. The employee had had several years’ worth of positive performance reviews. An investigation into his termination revealed that he was removed from significant work assignments shortly after he raised concerns about the company’s cost accounting model. He was eventually fired from all of his job responsibilities three months later.
The gaming company conducted its own investigation into the accuracy of the company’s financial records, which the employee did not have any responsibility for overseeing. The company says that the investigation exposed no inaccuracies in its financial records. The SEC’s investigation into the matter resulted in the first case against a company where there was no actual underlying securities violation, as well as the aforementioned half million dollar fine. It is also only the second case that has been brought against a company for retaliating against a whistleblower since 2010 when the Dodd-Frank Act first authorized the SEC to bring these kinds of charges. Whistleblower protection cases like this one are just one aspect of what the Dodd-Frank Wall Street Reform and Consumer Protection Act seeks to accomplish. The overall purpose of the law is to place significant regulations on the financial industry to address concerns about the economy that developed during the recent economic recession. Dodd-Frank also aims to protect consumers by making rules that protect borrowers from abusive lending and mortgage practices by banks.
The company has agreed to pay the half million dollar penalty, and it has agreed to refrain from treating whistleblowers in a similar manner in the future. However, the company did not admit or deny the SEC’s findings. The SEC made a statement regarding the case, saying that strong enforcement of anti-retaliation protections for whistleblowers is essential for the continued success of the SEC’s whistleblower program. In this situation, an employee noticed something that he felt could lead to inaccurate financial reporting violations of the law. The employee was then wrongfully targeted for doing the right thing by reporting it. The SEC further stated that bringing retaliation cases like this one shows that ensuring a safe environment for whistleblowers is a top priority.
Barrett Law PLLC: Defending Whistleblowers throughout Mississippi
If you have discussed concerns about potential violations of the law with senior management in your company and with authorities after receiving no response or an inadequate response from your employer, you might qualify for protection as a whistleblower. If you have experienced retaliation or “discipline” because of your actions, the Mississippi Whistleblower Attorneys at Barrett Law PLLC can help you. We understand the ins and outs of the whistleblower lawsuit process, and we will help you pursue justice in your case. To learn more, please call the Mississippi Whistleblower Attorneys at Barrett Law PLLC today at 1 (800) 707-9577 to schedule a free, initial consultation.